1. If U.S. interest rates decline compared to the rest of the world, what would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, Philippine pesos? 2. If Philippines gets inflation under control and the Philippine inflation rate decreases substantially, what would likely happen to the demand for Philippine pesos, the supply of Philippine pesos, and the peso/U.S. dollar exchange rate?
1. If U.S. interest rates decline compared to the rest of the world, what would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, Philippine pesos? 2. If Philippines gets inflation under control and the Philippine inflation rate decreases substantially, what would likely happen to the demand for Philippine pesos, the supply of Philippine pesos, and the peso/U.S. dollar exchange rate?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please help me answer this.
![1. If U.S. interest rates decline compared to the rest of the world, what would be the
likely impact on the demand for dollars, supply of dollars, and exchange rate for
dollars compared to, say, Philippine pesos?
2. If Philippines gets inflation under control and the Philippine inflation rate decreases
substantially, what would likely happen to the demand for Philippine pesos, the
supply of Philippine pesos, and the peso/U.S. dollar exchange rate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f833115-a06d-430c-b043-10288232c671%2F190e81de-7483-46fc-8dde-05959d9bca4f%2Flzj2bo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. If U.S. interest rates decline compared to the rest of the world, what would be the
likely impact on the demand for dollars, supply of dollars, and exchange rate for
dollars compared to, say, Philippine pesos?
2. If Philippines gets inflation under control and the Philippine inflation rate decreases
substantially, what would likely happen to the demand for Philippine pesos, the
supply of Philippine pesos, and the peso/U.S. dollar exchange rate?
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